Belgian healthcare investor Aedifica has struck its first deal in Ireland, purchasing a purpose-built care home in Mallow, County Cork, for €25 mln.
The property originally dates from 2004 and was extended four times, the most recent extension being completed in 2016. It accommodates 184 residents in bedrooms with en-suite facilities, tailored to suit the needs of elderly people requiring continuous care.
Stefaan Gielens, CEO of Aedifica, said: 'Aedifica acquires its very first healthcare property in Ireland, adding a seventh country to its portfolio and thus ensuring further diversification.
'Ireland provides an attractive investment opportunity for Aedifica, since the care market is still very fragmented and the rapidly ageing population will lead to increasing demand for healthcare real estate.'
As is customary in Ireland, the care home is let on the basis of a new, irrevocable 25-year triple net lease that is indexed to the consumer price index (CPI). The deal represents an initial net rental yield of 5.5%.
Bridhaven care home is situated in a residential area of the market town of Mallow, some 35 km from Cork City. It is operated by Virtue, which has over 35 years of experience in the Irish elderly care sector. Virtue is part of the Emera Group, a private operator working across 77 care homes in seven countries. The group already operates one Aedifica site in Belgium.
Gielens added: 'Thanks to this acquisition, we continue to expand our collaboration with the Emera Group, an established European care operator with a proven operating model. We are very pleased with this important step forward in our European growth story and we are already working on the further development of our group’s activities in Ireland.'
According to Aedifica research, the Irish market displays 'strong market fundamentals supporting long-term healthcare real estate investments'.
A rapidly ageing population, the growth of private operators, an ageing building stock and a sound healthcare financing system in a country with solid public finances, will drive long-term demand for new, quality healthcare real estate, the firm said.
